Hello and welcome to the Journal Business team's morning live blog for Thursday, May 18.

I'm Jonathon Manning and I'm running the live blog to bring you regular updates on all the breaking business news from across the North East and beyond.

The business breakfast live blog covers the latest big stories from the region's business community, as well as national news, FTSE updates and stock exchange announcements from the Journal region's listed companies and national firms - anything and everything from the world of business basically.

National bakery chain Greggs has said it will continue to invest in its £2 breakfast range which has proved hugely popular with customers.

In a trading update for the first 19 weeks of 2017 the firm said sales had grown 7.5%. Greggs has also made progress on a major refurbishment project, which has so far seen 87 shops refitted.

And Profits at luxury fashion firm Burberry have tumbled by more than 20%, despite the low value of the pound boosting sales. Underlying pre-tax profits fell 21% to £462m due to weak wholesale trading in the US.

Outgoing chief executive Christopher Bailey described the year as one of "transition".

If you'd like to contribute tweet at @jnlbusiness to share your opinions, drop me a line at jonathon.manning@trinitymirror.com or tweet me at @JonnyAManning

Linkedin said its research among millions of its members showed people still loved to work where they shopped.

Kate Corcoran, of the John Lewis Partnership, said:

Attracting top talent is incredibly important as our business is owned by our partners and LinkedIn plays a key role in this.

Sarah Andrews, retail director at Harrods, said:

It is fantastic to see the retail industry, which offers such a variety of careers and opportunities, to continue to lead the way for prospective UK employees.

Part of what makes Harrods such a special business is the diversity of roles we are able to offer, all under one roof.

John Lewis in Eldon Square

9:03Jonathon Manning

Facebook fined £94m over data claim in WhatsApp takeover

Facebook has been slapped with a €110m (£94.5m) fine after the EU’s anti-trust watchdog said it provided “incorrect or misleading” information regarding its $19bn (£15.3bn) takeover of WhatsApp.

The European Commission said the US social network inaccurately claimed it would be unable to combine user data between the two companies’ accounts.

The commission said:

Contrary to Facebook’s statements in the 2014 merger review process, the technical possibility of automatically matching Facebook and WhatsApp users’ identities already existed in 2014, and Facebook staff were aware of such a possibility.

It added that the ruling does not affect its decision to approve the merger. Commissioner Margrethe Vestager, who has recently put the tax affairs of a number of high-profile firms including Apple, Amazon and Google under the microscope, said the sanction was “proportionate and deterrent”.

She added:

Today’s decision sends a clear signal to companies that they must comply with all aspects of EU merger rules, including the obligation to provide correct information.

And it imposes a proportionate and deterrent fine on Facebook. The commission must be able to take decisions about mergers’ effects on competition in full knowledge of accurate facts.

Whatsapp being used on a smartphone (Image: Jonathan Brady/PA Wire)

8:57Jonathon Manning

Newcastle Building Society to close branches in Dumfries and Gibraltar as part of new strategy

Newcastle Building Society is set to create 130 new jobs this year as part of moves to strengthen its presence in its North East heartland.

The region’s largest building society has set in motion a new branch review which will involve investment in a number of branches in the North East and Cumbria.

The programme will involve the relocation or refurbishment of three branches – in Durham, Carlisle and Berwick – all of which will be completed over the next 18 months.

The building society’s strategy to focus more closely on its heartland area will lead to branch closures in Dumfries and Gibraltar, a decision the society said had not been made lightly.

Measures have been put in place to support staff and assist customers when the branches shut their doors at Dumfries, in September, and in Gibraltar, in October.

The Society has begun consultations with the 12 affected staff.

Chief executive Andrew Haigh said the firm is committed to the North East and that it wants to make the branch network fit for the future. Having created 118 new jobs during 2016 as part of an ongoing £10m investment programme across the business, which took its overall headcount past the 1,000 mark, the society is also aiming to create 130 new roles this year.

Mr Haigh said:

We are committed to our heartland area and are continuing to invest in a modern high street branch network that is fit for the future and designed around the needs of our customers.

Our latest branch investments are complemented by additional investment in digital and telephony options to support the first class service we aim to provide through whichever channels our customers choose to connect with us.

Branch closures are always regrettable. The changes we’re making are in line with our strategic focus on our heartland, and we will ensure that customers and staff in these two locations are fully supported through the closure process.

New investment planned as Northumberland care home is snapped up by family firm

New investment is being planned for a Northumberland care home after a family firm snapped it up from its long-term owner.

Parkside Care has added the Northlands Care Home in Morpeth to its portfolio of properties, which also includes facilities in Sunderland, Gateshead and North Shields.

The 35-bed home has been bought from owner Jill Lax, who had run it since 1995 as part of the Autumncare Group Ltd, which had added an extension to the original building shortly after its purchase to almost treble its capacity from the original 13-bed size.

Over the next 18 months, Parkside Care, headquartered in North Shields, will carry out an extensive refurbishment project to bring the building in line with its corporate standards, with a new nurse call system, new lighting and new flooring all due to be installed.

All of the 40 full and part time staff that work at Northlands are remaining in place, and the Parkside management team said it is open to making further regional acquisitions as and when the right opportunities come along.

Matthew Flinders of RMT Accountants and Business Advisors and Debra Swinburn of Evans and Co advised Jill Lax on the disposal of the Northlands Care Home, while Darrell Francoisy of NatWest Bank and Christopher Welch of Sintons Law Firm worked with Parkside Care on the acquisition.

Jill Lax said:

After running it for more than two decades, Northlands has become far more than just a business to us, and we have made significant financial and emotional investments in creating the kind of supportive environment that residents deserve.

We had to be certain that we were going to be passing it on to the right sort of operator which would look after the residents and staff as we would wish and keep developing the quality of services that Northlands could offer.

Lloyds boss buys £36,000 of shares amid speculation of HSBC switch

Lloyds Banking Group boss Antonio Horta-Osorio has splashed out £36,000 buying shares in the lender amid rising speculation over his future.

Mr Horta-Osorio picked up 50,000 shares in Lloyds at 72.31p each, according to a stock market filing issued just a day after the Government sold its final stake in the bank.

The sale, which returned the bank to private ownership nearly a decade after its £20.3bn bailout, has sparked further questions over the chief executive’s future.

On Wednesday Mr Horta-Osorio insisted he is “very happy” at Lloyds, adding that “a job is never done”, dampening rumours he could be headed for the exit.

Speculation in the Square Mile has linked Mr Horta-Osorio with a possible move to HSBC, where Stuart Gulliver will step down as chief executive in 2018.

Lloyds said on Wednesday that the taxpayer had made a profit of £894m on the original £20.3bn of cash pumped in as part of its rescue.

In an accompanying statement, Mr Horta-Osorio said:

Six years ago we inherited a business that was in a very fragile financial condition. Thanks to the hard work of everyone at Lloyds, we’ve turned the group around.

But the job is not done. We’re going to continue to use our strong position to Help Britain Prosper.

Lloyds Banking Group chief executive Antonio Horta-Osorio

8:41KEY EVENT

FTSE closes in the red amid jitters over Donald Trump's future

The FTSE 100 followed international benchmarks into the red on Wednesday, as calls for US President Donald Trump’s impeachment sent jitters across global markets.

London’s blue chip index ended the day down 0.25%, or 18.56 points, at 7,503.47, ending a three-day streak of record highs.

The French Cac 40 and German Dax also closed lower, by 1.6% and 1.3% respectively, while American indices including the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite were all down more than 1% in early US trading.

Equity markets were hit by growing calls for Mr Trump to be forced out of office, after fresh details emerged about his recent interaction with the recently-fired FBI boss James Comey.

Connor Campbell, a financial analyst at SpreadEx, said:

Investors have been shaken by reports that Trump urged the then-FBI chief Comey to drop his investigation into Michael Flynn, the latest twist in the Russia saga that is gradually engulfing the president.

There are a couple of reasons as to why this has caused such jittery trading. Firstly, it threatens to delay, or completely derail, Trump’s market-lifting infrastructure and tax policies.

Secondly, and more drastically, it could actually lead to the impeachment of the sentient Wotsit, an eventuality that would completely erase the foundations of the market’s recent record highs.

In currency markets, the pound was mixed, up 0.2% against the US dollar at 1.294, but down 0.2% versus the euro at 1.162. That is despite fresh data showing the UK’s unemployment rate has fallen to a 32-year low of 4.6%.

However, a 2.1% rise in wages - excluding bonuses - failed to keep up with the rate of inflation which came in at 2.7% for April.

US President Donald Trump (Image: AP)

8:37Jonathon Manning

Northumbria University unveils state-of-the-art Business Clinic in partnership with Santander

Northumbria University’s highly successful Business Clinic has relocated to its own 500 square metre premises on New Bridge Street, where it has also received a £150,000 from Santander Universities UK.

The Business Clinic forms part of Northumbria University’s Business School and sees business students participate in a ‘consultancy firm’ to provide advice for clients, including big name firms Greggs Plc and Parker Hannifin.

The university, which has 34,000 students from 132 countries, has invested more than £800,000 to move the Business Clinic into the vibrant, purpose-built premises, which includes client briefing rooms, a boardroom, reception area, a conferencing and event space and a digital communications system.

The clinic itself offers a free service to all types of businesses, from SMEs and multinationals to charities, social enterprises and not-for-profit organisations, and students are encouraged to work closely with the clients to get to the root of their problems and deliver genuine solutions.

To date, the Business Clinic has helped more than 600 students advise more than 145 organisations including the Dyspraxia Foundation, Northumbria Police, North West Ambulance Service, BALTIC Centre for Contemporary Art, Greggs plc, Helix Arts and Parker Hannifin.

Nigel Coates, director of the Business Clinic, said:

Few universities in the UK offer their business students the opportunity to work directly with business leaders but Northumbria is an exception.

Since 2013, the Business Clinic has been supporting our final-year undergraduate and Masters’ students to provide clients with a free-of-charge, full consultancy service under the supervision of experienced staff.

The Business Clinic’s new premises also offer the ideal venue for growing numbers of SMEs and social enterprises that are expressing their need to us for external engagement and networking opportunities.

Burberry's figures: wholesale turnover drops 14%

Burberry said the weak pound flattered full-year revenues, up 10% at £2.8bn, but sales fell 2% at constant exchange rates.

Store sales - which make up 77% of revenues - rose 1% on a like-for-like basis after a 3% rise in the final six months, with the UK leading a double-digit sales hike across the Europe, Middle East, India and Africa region.

But underlying wholesale turnover dropped 14% and licensing sales slumped 48%. This was offset in part by efforts to slash costs across the group.

Burberry has been leading a turnaround plan that has included simplifying the product line, revamping its digital store and cutting costs. It has also moved to license out its beauty range as part of a new partnership with make-up brand Coty.

The group said earlier this month it would relocate 300 jobs from its London offices to a new site in Leeds as part of cost-saving measures.

Staff at its London headquarters have begun a consultation where they will be offered the chance to move to the North or face the prospect of redundancy.

The move is part of a plan that aims to deliver at least £100m in cost savings by 2019. However, Burberry’s plans for a flagship manufacturing and weaving facility in Leeds remain on hold.

The former Burberry shop

8:26KEY EVENT

Underlying profits tumble at Burberry despite Brexit boost

Luxury fashion firm Burberry has revealed underlying annual profits tumbled by more than a fifth, but saw the Brexit-hit pound boost sales in a “year of transition”.

The group said underlying pre-tax profits plunged 21% to £462m as it was hit by weak wholesale trading in the US. But including the boost from the weak pound since the Brexit vote, underlying profits lifted 10%, while Burberry cheered ongoing “exceptional” sales in the UK thanks to the boom in spend on luxury goods from tourists.

The group cautioned the benefit from the pound would begin to fade later this year, which will hit hit profits in the new financial year by around £30m.

Outgoing chief executive Christopher Bailey said:

2017 was a year of transition for Burberry in a fast-changing luxury market.

The actions we have taken to lay the foundations for future growth are yielding early benefits and I remain confident that these will build over time.

The full-year results outline the challenges facing new boss Marco Gobbetti, who takes on the top role in July, when Mr Bailey will step aside to become president and chief creative officer.

A Burberry store

8:21Jonathon Manning

FTSE and pound update

The FTSE-100 index at 7:44am was unchanged at 7503.47.

The pound at 8am was 1.2952 dollars compared to 1.2944 dollars at the previous close.

The euro at 8am was 0.8592 pounds compared to 0.8602 pounds at the previous close.

8:18KEY EVENT

Greggs doubles down on £2m breakfast deal as sales improve

Sales at bakery chain Greggs were boosted 7.5% during the first 19 weeks of 2017 as the firm said it had invested further in its £2 breakfast deal.

The firm said it had invested further in its breakfast range to meet the growing demand from customers who recognised the “quality and value” of the offer.

Greggs also continued to expand its Balanced Choice range after adding pressed juice drinks, salads, and wraps.

Meanwhile the bakery chain has continued a major refurbishment project, which saw 87 shops refitted during the 19 week period. The company also closed 14 shops and opened another 42.

The expansions is focused on food-on-the-go locations, and expanding into Northern Ireland and the South West of England. Greggs now has 1,792 shops across the UK.

In March chief executive Roger Whiteside revealed plans to close three of the firm’s central bakeries over the next five years. The closure of the sites is expected to lead to the loss of 355 jobs at sites in Twickenham, Edinburgh and Sleaford.

In a trading update, made today, Mr Whiteside said:

Our investment in new systems and process improvements continues apace. Central forecasting and replenishment is now operating in half of our shop estate, replacing the traditional ordering process. Initial signs are good - the system is popular with staff and is delivering improved product availability.

We have also concluded the consultation process with staff affected by the planned consolidation of our manufacturing operations and now have a basis on which to commence the investment programme that will support further growth in shop numbers and improved quality and efficiency in manufacturing.